Construction of the first stand-alone comprehensive children’s hospital in Nevada by Intermountain Health stands to boost health and wellbeing for children as well as Nevada’s economy.
The new hospital that was announced last fall is expected to keep children and families in Nevada for health care needs, give the state a $724 million economic boost during five years of anticipated construction, and $841 million in annual economic output once the hospital opens, according to an independent research study conducted by Applied Analysis.
“It was important for us from the beginning to complete all due diligence towards the goal of the first stand-alone children’s hospital,” said Lawrence Barnard, Intermountain Health AVP of Pediatrics in Nevada. “This work has been multifaceted, strategic, analytical, and required years of hard work and determination.”
Intermountain Health contracted with Applied Analysis to conduct independent research prior to its October announcement to build a children’s hospital in Southern Nevada. This large analysis, which was returned in early 2024, included the health needs of the pediatric Nevada population, economic impacts from building a facility, and the size and scope of a children’s hospital to fulfill the needs of the state.
The analysis was included in part in the UNLV Lincy Institute report, “Developing a Stand-Alone Hospital in Southern Nevada” issued last September.
Here are some key findings:
The new hospital would help families stay in Nevada for pediatric care. In 2023, Nevada reported 29,802 children and youth under age 21 received care out of state. The payments to those out-of-state providers were over $123 million.
“This does not include the immense toll families had to pay financially, and the mental stress, to get their children specialized care in those states – sometimes needing to be away from home for days and weeks,” said Barnard.
Construction is projected to bring a projected $724 million boost for the five years the hospital is being built.
Once open, the hospital is expected to create 1,334 jobs including health care providers and other clinical and related professionals.
“Recruitment efforts and workforce planning are already under way to prepare for when the doors open. We will be ready,” Barnard said.
The hospital is expected to create $841 million annually in economic output.
Time Is Now
A children’s hospital in the state has been historically financially unfeasible. For example, children have a higher share of the population, above the national average, at 21.7 percent of the population. That population represents a disproportionate amount of Medicaid enrollees. Around 20 percent of all adults are Medicaid enrollees, while 52.4 percent of all Nevada children are on Medicaid and CHIP.
In Nevada, Medicaid reimbursements have been lower; in 2021 they ranked 47th in the country. The reimbursement rates from Medicaid in the state covered roughly a third of what commercial insurers’ rates covered. State officials have been working to increase reimbursements, and a recent provider tax has helped the situation.
“We have been working with state officials to help bring this Medicaid gap closer to the national average which helps retain providers, keep costs down, and families here in the state versus seeking care miles away,” Barnard said. “We thank them for their efforts and look forward to continue the work.”
Intermountain Health announced last October that it was building a comprehensive children’s hospital on land it secured in UNLV’s Harry Reid Research and Technology Park. In January the firms Shepley Bulfinch and Gensler were announced as architects for the project.
Groundbreaking is expected within the next year, and the hospital is projected to open by 2030. The new hospital will be sized to accommodate more than 200 beds.
UNLV Lincy Institute released the “Developing a Stand-Alone Hospital in Southern Nevada” report last September, in which Intermountain contributed the information contained in the Applied Analysis study. The Lincy report stated the following:
“Proper funding and investment in an independent not-for-profit pediatric healthcare model are essential to ensure high quality, coordinated pediatric care and well-compensated healthcare professionals. A nonprofit organizational model with funding from multiple sources — private, public, and philanthropic — is vital for investing in residency training, research, retaining staff, and attracting new talent. Investing in healthcare for children and adolescents offers high long-term returns through prevention and early detection.
Intermountain is a not-for-profit health system that focuses on proactive care aimed at reducing overall medical costs. This gives the system the ability to focus on the preventative efforts rather than profits.
This gives the system the ability to focus on the preventative efforts rather than profits.
“This project is historic. The most significant investment in children’s health within Nevada in this generation. To make it work, we recognize the vital role philanthropic donors will play in creating a legacy of care that will impact kids now and for generations to come,” said David Flood, Intermountain Health chief development officer. “This is truly a moment in time for individuals and organizations to have dramatic impact on the wellbeing of this great State, and beyond.”
Intermountain Health has 34 hospitals, including two locations of Intermountain Primary Children’s Hospital in Utah. The Primary Children’s Salt Lake City location has approximately 287 beds, including 23 behavioral health beds, and its new Larry H. and Gail Miller Primary Children’s Campus in Lehi, Utah, has 66 beds.
Intermountain also recognizes the work required to get to this point. There are many across the greater Las Vegas valley and beyond who have worked diligently for a comprehensive children’s hospital.
“We are grateful for the leaders, pediatricians, caregivers, hospitals, and other organizations who have dedicated themselves to caring for children for many years. We are privileged to join with them in helping to advance healthcare for the children we serve,” said Mitch Cloward, president of Intermountain Health’s Desert Region, which includes southern Nevada and southwest Utah.
Learn more about Intermountain Health at intermountainhealth.org.
About Intermountain Health
Headquartered in Utah with locations in six states and additional operations across the western U.S., Intermountain Health is a not-for-profit system of 34 hospitals, approximately 400 clinics, medical groups with some 4,600 employed physicians and advanced care providers, a health plans division called Select Health with more than one million members, and other health services. Helping people live the healthiest lives possible, Intermountain is committed to improving community health and is widely recognized as a leader in transforming healthcare by using evidence-based best practices to consistently deliver high-quality outcomes at sustainable costs. For up-to-date information and announcements, please see the Intermountain Health newsroom at https://intermountainhealthcare.org/news.
